Current SDPI Stock Info

Superior Drilling Products (ticker: SDPI) specializes in designing and building products meant to optimize the drilling process. Superior offers five products geared towards advancing drilling efficiency and two services to benefit operating companies during their drilling activities.

Eliminating problems downhole

Superior’s drilling oriented technology is specialized for solving problems inherent in the drilling process. The company’s Drill-N-Ream® tool is built to reduce tortuosity within the wellbore and remove any ledges or doglegs that may become problematic in later stages of wellbore maintenance or reservoir testing. As such, it was developed with horizontal drilling in mind, where a tortuous well-path, and the problems associated with it, can be detrimental to project success.

Superior Drilling Products:  Demand Heading Up with Rig Count

Source: Superior Drilling Products

Superior Drilling Products: “A high quality wellbore drilled the first time produces greater drilling and completion results.”

“The value of our Drill-N-Ream is being realized by a continually growing number of operators, with more beginning to use multiple tools of various sizes on a single well in their drilling processes,” Superior reported during the first quarter. “The tool improves penetration rates, helps rotary steerable systems around the curve and off bottom, reduces shock and vibrations thereby improving MWD (measurement-while-drilling) tool life.”

Superior Drilling Products:  Demand Heading Up with Rig Count

Source: Superior Drilling Products

The CT Strider and the Strider technologies are both used in minimizing friction during coil-tubing and drilling operations, respectively. The V-Stream tool is built to stabilize the drill sting in the wellbore and to simultaneously utilize attached cutters to cut away at the formation in the wellbore and further reduce wellbore tortuosity.

“We commercialized the Coiled Tubing Strider (CTS) that incorporates our patented StriderTM oscillation system technology. While revenue was modest and costs are still high, market reception has been very positive,” the company said.

Superior’s DR Stinger tool is a reaming tool run without a drill bit and is used to remove doglegs, ledges, and any other tortuosity in the wellbore.  The tool is meant to run without a drill bit in order to eliminate the likelihood of side-tracking.

Services that reduce operator costs

Superior’s PDC Bit Re-manufacturing service pioneered bit-remanufacturing technology and processes. Bit remanufacturing can be particularly attractive for operators looking to reduce drilling costs, or when finding a new bit in the middle of a drilling operation is difficult or impossible. In a price environment that necessitates cost reduction but still allows drilling operations to commence, Superior’s bit remanufacturing can be invaluable.

The manufacturing and research and development division within Superior, Extreme Technologies, LLC, or XTech, specializes in custom bit manufacturing and research and development initiatives. XTech itself will work with customers in designing and testing specialized drill bits and drilling technology.

Drilling activity translates to SDPI’s growth

Because all of the technologies and services developed by SDPI are meant to enhance drilling efficiencies, the rig count has a significant impact on industry utilization of Superior’s products. The same works in reverse, as the industry will be more capable of drilling at low commodity prices with the application of efficiency-driven drilling technologies.

Superior Drilling Products:  Demand Heading Up with Rig Count

Source: Superior Drilling Products

Bit repair

The company’s bit repair division has seen a rise in the number of bits coming in from outside of its normal Baker Hughes contract area. Repair demand sourced from Superior’s agreement with Baker Hughes typically comes out of the Rockies, California, and Alaska but, as of late, has also been coming from other parts of the Continental U.S., resulting in a doubling in bit repair revenue from Q4, 2016 to Q1, 2017.

Superior Drilling Products is presenting at EnerCom’s The Oil & Gas Conference® 22

Superior will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.

The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors.  The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.

Superior Drilling Products:  Demand Heading Up with Rig Count

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